Obesity remains a serious health problem and it is no secret that many people want to lose weight. Behavioral economists typically argue that “nudges” help individuals with various decisionmaking flaws to live longer, healthier, and better lives. In an article in the new issue of Regulation, Michael L. Marlow discusses how nudging by government differs from nudging by markets, and explains why market nudging is the more promising avenue for helping citizens to lose weight.

Two long wars, chronic deficits, the financial crisis, the costly drug war, the growth of executive power under Presidents Bush and Obama, and the revelations about NSA abuses, have given rise to a growing libertarian movement in our country – with a greater focus on individual liberty and less government power. David Boaz’s newly released The Libertarian Mind is a comprehensive guide to the history, philosophy, and growth of the libertarian movement, with incisive analyses of today’s most pressing issues and policies.

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Cost Overruns, Again

The Washington Postreported yesterday that the cost of new combat ships from Lockheed Martin and General Dynamics will likely be at least $350 million each, instead of the originally budgeted $220 million.

That 59 percent cost increase is routine for big federal procurements. The table below summarizes official government estimates of costs for various defense, energy, and transportation projects.

No doubt, what goes on with these projects is a “nudge nudge, wink wink” between federal officials and major contractors. The game involves key players on both sides low-balling initial costs in order to get project approval, and then having an informal agreement to let costs float up over time.

In this case, one cause of the combat ship cost increase, noted the Post, was that ”the Navy said its original cost estimate did not factor in some management costs.” How convenient!

A Sampling of Federal Cost Overruns

(Defense items in constant dollars; other figures in current dollars)

Project

Estimated Cost and Date of Estimate

Original

Latest or Actual

Transportation

Boston “Big Dig”

$2.6b (1985)

$14.6b (2005)

Virginia Springfield interchange

$241m (1994)

$676m (2003)

Kennedy Center parking lot

$28m (1998)

$88m (2003)

Air traffic control modernization

$8.9b (1998-2004)

$14.6b (2005)

Denver International Airport

$1.7b (1989)

$4.8b (1995)

Seattle light rail system

$1.7b (1996)

$2.6b (2000)

Energy

Yucca mountain radioactive waste

$6.3b (1992)

$8.4b (2001)

Hanford nuclear fuels site

$715m (1995)

$1.6b (2001)

Idaho Falls nuclear fuels site

$124m (1998)

$273m (2001)

National ignition laser facility

$2.1b (1995)

$3.3b (2001)

Weldon Springs remedial action

$358m (1989)

$905m (2001)

Defense (per unit in 2003 dollars)

Global Hawk surveillance plane

$86m (2001)

$123m (2004)

F/A-22 Raptor fighter

$117m (1992)

$254m (2002)

V-22 Osprey aircraft

$36m (1987)

$93m (2001)

RAH-66 Comanche helicopter

$33m (2000)

$53m (2002)

CH-47F cargo helicopter

$9m (1998)

$18m (2002)

SBIRS satellite system

$825m (1998)

$1.6b (2002)

Patriot advanced missile

$5m (1995)

$10m (2002)

EX-171 guided munition

$45,000 (1997)

$150,000 (2002)

Other

Capitol Hill visitor center

$374m (2002)

$559m (2004)

Kennedy Center opera house

$18.3m (1995)

$22.2m (2003)

Kennedy Center concert hall

$15.1m (1995)

$21.3m (1997)

Washington D.C. baseball stadium

$435m (2004)

$611m (2007)

International space station

$17b (1995)

$30b (2002)

FBI Trilogy computer system

$477m (2000)

$600m (2004)

Pentagon secret spy satellite

$5b (n/a)

$9.5b (2004)

Pentagon laser anti-missile system

$1b (1996)

$2b (2004)

Sources: Compilation by Chris Edwards based on GAO reports and Washington Post stories. Figures in $millions (m) or $billions (b).